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Piramal Group claims its bid for DHFL highest and compliant

Piramal Enterprises on Friday claimed that its bid for decision of debt-ridden mortgage lender DHFL is highest and absolutely compliant with regulatory norms.

Since the conclusion of the fifth and ultimate spherical of the bidding course of final month, Piramal Enterprises and the US-based Oaktree Capital are claiming that their bids are the highest and absolutely implementable.

According to sources, suitors have submitted bids within the vary of Rs 35,000-37,000 crore.

 

The Committee of Creditors (CoC) are inspecting every bid intimately together with qualitative and quantitative parameters and it’s anticipated to take a name on January 14.

“The Piramal bid for DHFL offers lenders the highest upfront cash recovery, has the highest score on the CoC evaluation matrix, is fully compliant with all regulatory norms, and is fully and immediately implementable,” the corporate stated in a press release.

“We have full faith that the committee of creditors, comprising some of the most reputed financial institutions of our country will make the fair and just choice in the voting process,” it stated.

Earlier this week, Oaktree additionally claimed that its revised bid for DHFL is unconditional and comes with a dedication of contemporary capital infusion of Rs 1,000 crore for the revival of the corporate.

According to sources, Oaktree in a letter dated January 6 to members of the CoC and administrator of DHFL stated the decision plan gives a clear construction for all stakeholders.

Contesting capital infusion declare, Piramal Enterprises stated Oaktree has provided a mere Rs 1 lakh as dedicated fairness and proposes to speculate Rs 1,000 crore by means of fairness or debt whereas Piramal’s plan commits Rs 3,8000 crore of fairness.

In addition, it stated, it has Rs 16,000 crore of fairness in its monetary companies enterprise out there for DHFL, and one other Rs 10,000 crore on the Piramal Enterprises degree able to be infused as crucial.

With regard to the life insurance coverage subsidiary of DHFL, it stated, there is no such thing as a particular plan or implementable resolution spelt out for the enterprise by Oaktree.

Besides, the US-based firm has not specified the identify of Indian-owned and managed Alternative Investment Fund (AIF) for taking on the insurer.

The assertion additionally alleged that a further curiosity revenue provide of Rs 1,700 crore made by Oaktree put up the deadline of December 22, 2020 is patently unlawful.

“It is important to note that in the final bid, Piramal has also offered Rs 1,000 crore as interest income, which is also not being considered for scoring purposes,” it added.

In November 2019, the Reserve Bank referred Dewan Housing Finance Limited (DHFL), the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.

DHFL was the primary finance firm to be referred to the NCLT by RBI utilizing particular powers beneath Section 227 of the IBC.

Prior to that, the corporate’s board was outmoded and R Subramaniakumar was appointed because the administrator.

He can also be the decision skilled beneath the Insolvency and Bankruptcy Code (IBC).

As of July 2019, the corporate owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders.

Image used for illustration objective solely.

Photograph: Reuters

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